Using Your Credit Cards Wisely

Did you know that managing a credit card is harder than applying for one

? Anytime you are using the credit cards you are borrowing money that you are supposed to pay back at the end of the month.

But, if you fail to repay the due regardless of the reason, the interest rates add to the total amount owed. In this article, we are going to highlight on some tips for using credit cards wisely.

The first step is to know all the responsibilities in owning one. Think of other appropriate way of payment that is convenient to you. This can include a person living in the country side where most purchases are done using cash rather than a credit card which could offer a better chance for one living in the city. What if you are 21 years and below and you receive a credit card offer in your mail? Simply cancel it and dont accept. The law by its own definition does not allow for an advertisement to a minor 21 years old and below unless it is mutually reached that she or he is able to make payments.

Choose wisely. Be aware of all the interest rates and the repayment options when selecting a credit card. Take caution in the increasing interest rates after luring introductory interest rates, the method of calculating the interest rates, grace period, other charges like late payment fee, transaction fees, over the time limit fees and the credit limits. Desire low credit limits to keep your credit low and maintain your repayment option to a reasonable level. The features and services like frequent flyer miles, warranties and cash rebates should also be taken care of when choosing credit cards.

Limit the number of credit cards you get from various credit providers as this will make it more difficult to manage your spending. As it is provided to remain loyal to your balance in your account, avoid spending more than you can afford to pay at the end of the month. A responsible use of a credit card establishes a solid credit rating and also eliminates financial troubles of overspending. Keep track of your spending frequencies at least once a month.

Be open and elaborate when negotiating terms of use of the credit card so that no information is kept under the table only for you to regret later. And finally when you feel that you are done with that particular credit card; follow the right procedure to close that credit card account. Some things like the credit score accumulate according to the length of your credit. Write a documented letter to the issuer and remember to keep a copy. This can act as good evidence that you were credit trusted with that company; however, if you close the account via a phone conversation there could be doubt about your credibility in paying and this may send information of bad credit. Rise up and follow the regularities of credits and the credit cards will be a smoother ride.

by: Guy Harolds

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